Monaco is still the most expensive luxury residential market in the world despite a 1.3per cent annual price decline in 2019, according to a report by Savills released last week.
The average price in the city-state fell 1.3per cent year-over-year to €48,150 per square meter (about $4,924 per square foot) last year. However, this small fall follows an 18.1per cent increase in 2018 as prices reached a high plateau, according to Savills.
Hong Kong ranks second with an average price of €44,700 per square meter. Both Monaco and Hong Kong are constrained by available space and are bolstered by their global reputations, according to the report, entitled Spotlight on Monaco.
Luxury residential properties in New York, the third most expensive market in the world, cost nearly half as much as Monaco, with average price per square meter standing at €24,300.
“Looking to the year ahead, while the economic impact of Covid-19 is still largely unknown, the residential market in Monaco is well placed to weather the storm of any economic downturn,” Sophie Chick, head of Savills world research, said in the report.
Despite the uncertainty caused by the Covid-19 pandemic, the real estate consultancy projects luxury prices in Monaco to remain flat or see a small increase this year, due to a lack of supply and stable demand, Ms. Chick said.
The number of sales in Monaco fell from 523 in 2018 to 462 last year, with sales of new builds falling 54 per cent due to a lack of supply. Monaco also ranks as the most expensive luxury rental market with an average rent of €126 per square meter per month. This is about 60 per cent higher than New York, the second most expensive location in the Savills rental rankings, according to Mansion Global Daily.
